PETRONAS Chemicals to acquire JV’s maleic anhydride plant
PETRONAS Chemicals Group Berhad (PCG) recently signed an agreement with its joint venture (JV) company, BASF PETRONAS Chemicals Sdn Bhd (BPC), to acquire the maleic anhydride (MAn) plant located in Gebeng, Kuantan, Malaysia.
The 113 kilo-tonnes per annum (ktpa) MAn plant was previously shut down by BASF PETRONAS Chemicals, following a product portfolio realignment exercise that led to the permanent closure of its Butanediol (BDO) and derivatives plant. With the acquisition, PETRONAS Chemicals Group will repurpose the plant by rejuvenating and upgrading the facility to produce higher quality MAn that is better suited to the food and pharmaceutical industries. PCG is currently performing a detailed assessment, which is expected to be completed in the first quarter of 2023 and subject to final approval. The plant is targeted to be ready by the first half of 2025.
“Our current integrated facility will ensure competitive and secure feedstock supply to the plant. In addition, the proximity of the plant and our identified target markets within the Asia-Pacific and Indian subcontinents will enable us to provide competitive pricing to our customers,” said Mohd Yusri Mohamed Yusof, managing director/chief executive officer of PETRONAS Chemicals Group.
The acquisition will enable PETRONAS Chemicals Group to broaden its current product portfolio and strengthen its focus to diversify into derivatives and differentiated chemicals.
PETRONAS Chemicals Group, a leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia, operates a number of world-class production sites, which are fully vertically integrated from feedstock to downstream end- products. With a total combined production capacity of 12.8 million metric tonnes per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. Listed on Bursa Malaysia, PCG is part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.